{"id":38805,"date":"2025-12-03T14:05:50","date_gmt":"2025-12-03T14:05:50","guid":{"rendered":"https:\/\/financialrush.com\/?p=38805"},"modified":"2025-12-03T14:05:50","modified_gmt":"2025-12-03T14:05:50","slug":"etfs-make-it-to-invest-in-gold-taxes-may-be-the-tricky-part","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=38805","title":{"rendered":"ETFs make it to invest in gold. Taxes may be the tricky part"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108235351\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Frame Studio | Moment | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>For investors who want to add gold to their portfolios, <a href=\"https:\/\/www.cnbc.com\/2025\/11\/03\/mutual-funds-launch-etf.html\">exchange-traded funds<\/a> offer an easy way to do it.<\/p>\n<p>Just be sure to keep your expectations in check and know <a href=\"https:\/\/www.cnbc.com\/2025\/11\/16\/gold-capital-gains-taxes.html\">what it can mean<\/a> for your tax situation, experts say. Depending on how the ETF is structured, any gains may be taxed at a different \u2014 and sometimes higher \u2014 rate than you expected. And while gold can offer <a href=\"https:\/\/www.cnbc.com\/2025\/09\/06\/how-to-invest-in-gold-amid-record-run.html\">a store of value<\/a> during turbulent market times, the price tends to be volatile.<\/p>\n<p>\u201cIt\u2019s going to bounce up and down, and it\u2019s not always going to work in your favor,\u201d said Dan Sotiroff, senior analyst at Morningstar.\u00a0<\/p>\n<\/div>\n<h2 id=\"why-gold-is-drawing-etf-investors\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>Why gold is drawing ETF investors<\/h2>\n<div class=\"group\">\n<p>The value of one troy ounce (32.1 grams) of gold has skyrocketed over the last year, jumping nearly 60% to $4,204 at Tuesday\u2019s market close from $2,638 a year ago. In comparison, the <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-4\"><a href=\"https:\/\/www.cnbc.com\/quotes\/.SPX\/\">Standard & Poor\u2019s 500 index<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> has climbed about 12.9% in that time, closing Tuesday at 6829.37. The surge in price has been attributed to a variety of factors, including increasing demand from both central banks and individual investors \u2014 for the latter, that has included investing through ETFs.<\/p>\n<p>Some experts expect the spot price of gold to <a href=\"https:\/\/www.cnbc.com\/2025\/11\/28\/goldman-sachs-investor-poll-gold-can-top-5k-in-2026-.html\">reach $5,000 in 2026<\/a>. If the <a href=\"https:\/\/www.cnbc.com\/federal-reserve\/\">Federal Reserve<\/a> <a href=\"https:\/\/www.cnbc.com\/2025\/12\/01\/gold-climbs-to-six-week-high-on-risk-off-sentiment-in-equities-lower-dollar.html\">lowers its benchmark interest rate<\/a> when it meets next week, that could draw more investors because gold tends to perform better in low-interest-rate environments.<\/p>\n<\/div>\n<div class=\"group\">\n<p>Nevertheless, it\u2019s typically a good idea to limit your investment to no more than 5% of your portfolio, said certified financial planner David Rosenstrock, director of financial planning and investments at Wharton Wealth Planning in New York. He generally doesn\u2019t recommend including gold in investment portfolios.<\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/05\/08\/real-estate-and-gold-vs-stocks-best-long-term-investment.html\">Over the long term<\/a>, \u201cgold tends to underperform asset classes like stocks and <a href=\"https:\/\/www.cnbc.com\/2025\/11\/19\/bond-etfs-gaining-investor-attention-what-to-know-before-investing.html\">bonds<\/a> quite noticeably,\u201d Rosenstrock said. \u201cWhile a small percentage difference in annual returns might not seem significant, it can greatly affect an account balance when compounded over many years.\u201d<\/p>\n<\/div>\n<h2 id=\"some-etfs-invest-directly-in-physical-gold\" class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>Some ETFs invest directly in physical gold<\/h2>\n<div class=\"group\">\n<p>If you do decide you want to invest in gold, ETFs offer a way to do so without having to physically own the gold yourself. Like all ETFs, they trade throughout the day like stocks. Most are passively managed, meaning they track an index and its performance, for better or worse.<\/p>\n<p>These funds also are a small slice of the ETF universe, with roughly a few dozen in existence compared with the total number of ETFs \u2014 more than 4,300, according to Morningstar Direct data.<\/p>\n<p>Some ETFs invest directly in gold bullion. Each ETF share represents a certain amount of that physical gold. The largest one of these is SPDR Gold Shares (<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-10\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GLD\/\">GLD<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>) with $140 billion in assets, Sotiroff said.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"SpecialReportArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 id=\"more-from-etf-strategist\" class=\"RelatedContent-header\">More from ETF Strategist:<\/h2>\n<div class=\"group\">\n<p>Here\u2019s a look at other stories offering insight on ETFs for investors.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>If you invest in one of these ETFs through a taxable brokerage account, be aware that any profit when you sell may be taxed differently than gains on other investments like stocks and bonds, said CFP Patrick Huey, owner and principal advisor with Victory Independent Planning in Naples, Florida.\u00a0<\/p>\n<p>Short-term capital gains \u2014 profits on assets held for a year or less \u2014 face ordinary income tax rates, which <a href=\"https:\/\/www.cnbc.com\/2025\/10\/09\/2026-federal-tax-brackets.html?msockid=391ba50ec1cc657c2da2b3afc0fc6457\">is standard and range from 10% to 37%<\/a>.<\/p>\n<p>However, even if you hold on to your gold ETF for more than a year, typical long-term capital gains tax rates \u2014 <a href=\"https:\/\/www.cnbc.com\/2025\/10\/14\/capital-gains-taxes-2026.html?msockid=391ba50ec1cc657c2da2b3afc0fc6457\">which are 0%, 15% or 20%<\/a>, depending on your income \u2014 do not apply.<\/p>\n<p>\u201cFrom a tax standpoint, [gold is] treated as a collectible by the IRS, so long-term gains \u2026 are taxed at <a href=\"https:\/\/www.irs.gov\/taxtopics\/tc409\" target=\"_blank\">a maximum rate of 28%<\/a>,\u201d Huey said.\u00a0<\/p>\n<p>That holds true even if you invest in gold through an ETF. Investors with incomes that fall into higher tax brackets end up paying that rate.<\/p>\n<\/div>\n<h2 id=\"other-ways-to-invest-in-gold-through-etfs\" class=\"ArticleBody-subtitle\"><a id=\"headline2\"\/>Other ways to invest in gold through ETFs<\/h2>\n<div class=\"group\">\n<p>You can also invest in gold through another type of ETF: Those that invest in gold futures contracts \u2014 for example, Invesco DB Gold Fund (ticker: DGL).<\/p>\n<p>\u201cThese funds use derivatives rather than hold physical gold,\u201d Huey said.<\/p>\n<p>That also results in an unusual tax treatment. Generally speaking, gains on these gold futures ETFs \u201care governed by the IRS\u2019s so-called 60\/40 rule,\u201d Huey said.<\/p>\n<p>This means that whatever long-term gains tax you\u2019re subject to will apply to 60% of the gain, and ordinary tax rates will apply to 40% of it, no matter how long you\u2019ve held the ETF.\u00a0<\/p>\n<p>Another route to investing in gold via ETFs is through those that invest in <a href=\"https:\/\/www.cnbc.com\/video\/2025\/11\/04\/josh-browns-best-stocks-in-the-market-spotlight-on-gold-miners.html\">gold-mining companies<\/a>, such as VanEck Gold Miners ETF (<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-15\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GDX\/\">GDX<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>).<\/p>\n<p>\u201cThe basic idea is it\u2019s an indirect exposure to gold; the benefits to the mining businesses are tied to the price of gold,\u201d said Sotiroff, of Morningstar.<\/p>\n<p>However, he said, the prices tend to be \u201cextremely volatile.\u201d<\/p>\n<p>\u201cAnd you\u2019re getting exposure to businesses, not just to a yellow rock,\u201d Sotiroff said.<\/p>\n<p>In other words, you are investing in companies \u2014 which means you should be confident in the sector\u2019s future prospects for profits and growth.<\/p>\n<p>For these gold-mining ETFs, any profits you reap would be taxed at normal short- and long-term gains rates.<\/p>\n<\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2025\/12\/03\/gold-etf-taxes.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Frame Studio | Moment | Getty Images For investors who want to add gold to their portfolios, exchange-traded&hellip;\n","protected":false},"author":3,"featured_media":38806,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-38805","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/38805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38805"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/38805\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/38806"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}